SB446: SB446 Student Scholarship Organizations; State of Georgia to participate in the federal tax credit program for contributions of individuals to scholarship granting organizations; provide

26 LC 59 0441S The House Committee on Ways & Means offers the following substitute to SB 446: A BILL TO BE ENTITLED AN ACT To amend Chapter 2A of Title 20 of the Official Code of Georgia Annotated, relating to1 student scholarship organizations, so as to provide for the State of Georgia to participate in2 the federal tax credit for contributions of individuals to scholarship granting organizations;3 to designate the state revenue commissioner to make elections o n behalf of the State of4 Georgia with respect to federal tax benefits related to contrib utions of individuals to5 scholarship granting organizations; to require the state revenu e commissioner to provide6 notice to the secretary of the treasury of the United States that the State of Georgia elects to7 participate in such federal tax credit and to include in such n otice a list of qualifying8 scholarship granting organizations; to restrict state agencies from promulgating rules or9 regulations; to make conforming changes; to amend Code Section 48-7-29.16 of the Official10 Code of Georgia Annotated, relating to tax credits for contributions to student scholarship11 organizations, so as to make a conforming change; to provide fo r legislative intent; to12 provide for related matters; to provide for an effective date a nd applicability ; to repeal13 conflicting laws; and for other purposes.14 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:15 S. B. 446 (SUB) - 1 - 26 LC 59 0441S SECTION 1.16 The General Assembly finds and declares that:17 (1) The state should continue and expand its support of parent al choice in primary and18 secondary education and provide a variety of pathways for famil ies to meet the unique19 educational needs of their children, including through participation in tax credit programs20 that support student scholarships;21 (2) It is the intent of the General Assembly that the State of Georgia participate in the22 federal tax credit scholarship program established in Section 7 0411 of Pub. Law. No.23 119-21; and24 (3) Georgia's initial election to participate in the federal tax credit scholarship program was25 made in January 2026, by Governor Brian P. Kemp's submission of notice of advance26 election to participate under 26 U.S.C. Section 25F for 2027.27 SECTION 2.28 Chapter 2A of Title 20 of the Official Code of Georgia Annotate d, relating to student29 scholarship organizations, is amended by replacing "chapter" wi th "article" wherever the30 former term appears in:31 (1) Code Section 20-2A-1, relating to definitions;32 (2) Code Section 20-2A-2, relating to requirements for student scholarship organizations;33 (3) Code Section 20-2A-2.1, relating to entities prohibited from being student scholarship34 organizations; and35 (4) Code Section 20-2A-7, relating to penalties for failure to comply with requirements of36 chapter and violations.37 SECTION 3.38 Said chapter is further amended by designating Code Sections 20-2A-1 through 20-2A-7 as39 Article 1 and by adding a new article to read as follows:40 S. B. 446 (SUB) - 2 - 26 LC 59 0441S "ARTICLE 241 20-2A-20.42 Reserved.43 20-2A-21.44 (a) The state revenue commissioner is designated to make elections on behalf of the State45 of Georgia with respect to the federal tax credit established i n Section 70411 of federal46 Pub. Law. No. 119-21, as provided for in this article.47 (b) The state revenue commissioner shall comply with any requi rements under48 Section 70411 of federal Pub. Law No. 119-21 and any applicable federal statutes,49 regulations, or guidance in effect on December 31, 2026, including, but not limited to, 2650 U.S.C. Section 25F, to ensure that the state is eligible to par ticipate in such federal tax51 credit in taxable years beginning after December 31, 2026.52 (c) The state revenue commissioner shall:53 (1) Annually, on or before the date set by the secretary of th e treasury of the United54 States, provide official notice to the secretary opting into th e federal tax credit for55 contributions of individuals to scholarship granting organizati ons that meet the56 requirements of such federal tax credit. In a manner prescribe d by the secretary of the57 treasury of the United States Department of Revenue, the commis sioner shall provide58 certification of his or her authority to submit such notice. Such notice shall include a list59 of the scholarship granting organizations located in this state that meet the requirements60 for a scholarship granting organization under such federal tax credit. Such list shall61 immediately be published on the website of the Department of Revenue; and62 (2) Accept applications from scholarship granting organizations throughout the year for63 inclusion on the list submitted to the secretary of the treasur y of the United States as64 provided for in paragraph (1) of this subsection.65 S. B. 446 (SUB) - 3 - 26 LC 59 0441S (d) No department, agency, board, commission, or authority of this state has authority to66 adopt or promulgate any rule or regulation that expands, interprets, limits, or is otherwise67 not aligned with federal law, regulations, and guidance relativ e to the federal tax credits68 provided for in this Code section."69 SECTION 4.70 Code Section 48-7-29.16 of the Official Code of Georgia Annotated, relating to tax credits71 for contributions to student scholarship organizations, is amended by revising paragraph (3)72 of subsection (a) as follows:73 "(3) 'Qualified education expense' means the expenditure of fun ds by the taxpayer or74 business enterprise during the tax year for which a credit unde r this Code section is75 claimed and allowed to a student scholarship organization operating pursuant to Article 176 of Chapter 2A of Title 20 which are used for tuition and fees for a qualified school or77 program."78 SECTION 5.79 This Act shall become effective upon its approval by the Governor or upon its becoming law80 without such approval and shall apply to all taxable years beginning on or after January 1,81 2027.82 SECTION 6.83 All laws and parts of laws in conflict with this Act are repealed.84 S. 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